Business Credit Card Limit Calculator

What to Know About The FairFigure Business Credit Card Limit Calculator

Your business relies on funding to scale.

However, whether you’re applying for a business line of credit, a business loan (such as a term loan), or a business credit card, it’s difficult to know how much support you can expect to receive, especially if you aren’t sure how to determine this on your own.

That’s where financial calculators come in.

Our business credit card limit calculator helps you see your potential credit limit at a glance. To calculate your business credit card limit, we look at factors like your personal credit score, personal and business cash flow, business credit, and time in business.

There are a few things to know about our business credit card limit calculator before you start:

• The credit limit range encompasses a starter tier, an established tier, and a premium tier. As you become more established, build business credit, and increase your business revenue, you can expect better business credit cards with higher limits.
• These are starting spending limits. Your available credit will grow over time. So long as you maintain positive credit history with your credit card issuer, make your minimum payment (or pay in full), and increase your revenue, you will see a credit limit increase.
• Your personal credit does matter when trying to secure a business credit card. However, you can get a business credit card, EIN only. You can get a corporate card, fleet card, and similar business credit cards with poor personal credit and limited credit history.

How to Use The FairFigure Business Credit Card Limit Calculator

1. Select Your Personal Credit Score

Most business credit cards require a personal guarantee. As a result, this also means a personal credit check.

In the absence of business credit, a credit card issuer will look at your personal credit score to determine that you’re a trustworthy borrower.

A higher personal credit score improves the odds of credit card issuer approval. More than that, you’ll be able to get a business credit card with better terms. This can mean a higher credit limit, a lower interest rate, and even better rewards.

Use the dropdown menu to select your personal credit score range. You’ll notice that the range from good to poor will flash a warning on the right side of the credit calculator. For example, if you have a fair score, you’ll see this warning:

In this case, you may want to look for a business credit card, no personal credit check instead. The best credit card may not be from a traditional credit card company, but a different business card altogether.

This is often better than trying to improve your payment history and credit file to get a business card.

2. Enter Your Personal Annual Income and Business Annual Revenue

Your business annual revenue matters because credit card issuers want to make sure you can pay back your credit card balance.

Of course, your annual personal income matters too. With business credit cards that require a personal guarantee, you’re on the hook if your business can’t pay it back.

Enter your business annual revenue and your personal annual income. You can see how both influence your expected credit line by watching the range change on the right side of the business credit limit calculator.

3. Select Your Time in Business

Most business credit cards consider time in business when considering your application. This is true for most forms of funding, including a business line of credit or merchant cash advance.

Even the FairFigure Lift Card has time in business requirements.

A brand new business isn’t likely to have strong revenue streams or proof of revenue. Additionally, there’s no guarantee that a new business will succeed. A business with an established history has shown that it can operate profitably.

Select your time in business using the dropdown menu on the credit limit calculator. There are three options to choose from:

• Under 6 months
• 6-24 months
• 2 years or more

4. Enter Your Business Credit Score

Having business credit history and business credit scores can help you bump your estimate up. The better your business credit score, the more funding you can tap into.

We’re specifically looking at the Dun & Bradstreet PAYDEX Score. The PAYDEX Score, ranging from 0 to 100, provides businesses with an idea of how timely your payments are.

For example, a score of 80 demonstrates that you’re always paying vendors on time. If you have a score of 100, you consistently make vendor payments 30 days before the due date.

You can enter your business credit score in the provided box. A PAYDEX score of 80 is where your business credit will start helping you get a better credit limit.

If you don’t know your business credit score, you can create a free FairFigure account now to get started.

You might also consider alternatives like startup business credit cards with no credit, EIN only.

5. Analyze Your Results on the Right Side of the Screen

Once you’ve entered all of your information, you’ll see two estimates: your estimate with personal credit and your estimate with business credit.

The estimate with personal credit often sits on the lower end of the credit limit you could receive when applying for a business credit card.

The estimate with a business credit score of 80 or better will show you your potential preset spending limit once you start working on your business credit. This often overlaps with the lower estimate, but will feature higher limits.

If you have poor credit and can’t unlock the higher credit limits that you’re hoping for, you’re not out of options; You can work on building business credit and work on a path toward capital that doesn’t rely on your personal credit.

This is all while accessing financing at the same time.

6. Sign up for FairFigure to Monitor Your Business Credit and Access Funding

FairFigure supports small business owners with business credit monitoring, business credit building, and business funding.

Our business credit monitoring services help you track your scores and reports so you know where you stand. With Free, you get Creditsafe and the Foundation Report.

With FairFigure Premium, you unlock credit report and score monitoring for Creditsafe, Dun & Bradstreet, and Equifax. Additionally, we report your $35/month subscription to the SBFE, Equifax, Experian, and Creditsafe to help you build credit.

FairFigure Premium also gives you access to the FairFigure Lift Card. It’s EIN-only, with no personal credit, no personal guarantee, and no paperwork. So long as you generate at least $2,500 in monthly revenue and have three months in business, you can qualify.

It’s revenue-based, which means it scales with you. Plus, your activity is reported to each business credit bureau above as part of your FairFigure Premium subscription.

All you have to do is click on the “Sign Up for Free FairFigure Account” button on the calculator.